Rentvesting means you rent the place you live in and buy an investment property somewhere else. For a FIFO truck driver whose home base does not need to match where the money is placed, it can be a practical way into property.
You might spend two weeks on site and one week at home. If your home base is a rental near family, or a cheap room near the airport, buying where you live may not be the only way to build wealth. Rentvesting separates where you sleep from where you invest.
What Is Rentvesting and How Does It Work for FIFO Workers?
Rentvesting is renting where you want to live while owning an investment property in a different location. You pay rent for your home and take on a loan for the property you own, which a tenant helps pay for.
For FIFO drivers, this can suit a roster where your time at home is limited. You are not tied to a suburb because of a mortgage. You can also move interstate for family or work without having to sell. The rentvesting page covers the basics in more detail, and our guide to FIFO property loans explains how lenders look at roster-based income.
The main trade-off is that you carry two sets of costs. You pay rent as well as a loan, rates, insurance and maintenance on the investment. Rent can also go up, and a property can sit empty between tenants.
Can You Get an Investment Home Loan on a FIFO Truck Driver's Income?
Yes, many lenders will assess an investment loan on FIFO income, but each lender treats roster pay, allowances and overtime differently. Your loan amount depends on how much of that income a lender counts.
Some lenders count only part of your allowances or overtime. Others use a longer history to average it out. That is why two lenders can give you very different borrowing figures on the same payslips. Your rent and living costs are included in the assessment too, and that matters for a rentvestor. Our borrowing capacity page shows what shapes the number, and the home loans for FIFO truck drivers page covers the income side in detail.
If you want to know your number before you start looking, getting loan pre-approval is the usual first step. Pre-approval is not a final offer. It can lapse or change if your income, debts or the lender's policy change.
How Much Will an Investment Loan Cost Each Month?
At the illustrative rate of 6.75% p.a., a $500,000 loan over 30 years costs about $3,243 a month on principal and interest, or $2,813 a month on interest only. That rate is an example only. Your actual rate will depend on your deposit size and lender.
Consider a driver who rents for $450 a week and is weighing up that $500,000 loan. Interest only is about $2,813 a month, which is $500,000 x 6.75% / 12. Principal and interest is higher because you are also paying the loan down. The tenant's rent might cover part of either figure, but rarely all of it once rates, insurance, agent fees and repairs are counted.
So this driver adds up the whole picture. That means rent on their own place, the shortfall on the investment, and a buffer for months with no tenant. If the numbers only work when everything goes right, the plan is too tight. Use a calculator to test different loan amounts before you commit. Our interest only loans page explains that option and its main trade-off: you are not reducing the loan, and when the interest-only period ends, repayments rise because the same debt is repaid over a shorter remaining term.
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Interest Only or Principal and Interest on a Rentvested Property?
Interest only gives lower repayments for a set period, while principal and interest reduces your debt from day one. The right choice depends on your cash flow and how long you plan to hold the property.
Interest only can help if you need lower repayments while you build savings. The cost is that you are not building equity through repayments, and you will pay more interest overall than if you paid down the loan. Principal and interest has higher monthly repayments but steadily lowers your loan amount.
Some FIFO workers choose principal and interest and use an offset account to stay flexible. Money in a linked offset reduces the interest charged, and you can still reach it if you need it. Offset accounts can come with a fee or a slightly higher rate on some loans, so compare the full cost.
What Deposit Do You Need to Rentvest, and What About LMI?
The deposit you need depends on the lender and the loan to value ratio (LVR) they will accept. A smaller deposit usually means a higher LVR, and that can mean paying Lenders Mortgage Insurance (LMI).
LMI protects the lender, not you, and the cost is usually added to what you borrow. A bigger deposit can cut or remove it, but saving longer means more time before you buy. Some lenders offer LMI waivers for certain occupations, with conditions attached. See our LMI waivers page for how that works.
If you have equity in a home you already own, you may be able to use it as the deposit. That adds risk, because your current home secures both loans. The expanding your property portfolio page covers that path.
Rentvesting Tax Basics: Speak to Your Accountant First
Some costs of owning an investment property may be tax deductible, but the rules depend on your situation. The interest on the investment loan is deductible, but the principal you repay is not. Other costs such as council rates, insurance, agent fees and repairs may also be deductible, and capital works and depreciation may be claimable over time.
Rent you pay on your own home is not deductible. If the property costs more to hold than it earns, you are making a bet that its value will grow over time. Values can fall as well as rise, so only buy if you can hold it through the quiet years.
The rules for negative gearing and capital gains tax (CGT) are changing. From 1 July 2027, rental losses on established residential properties bought after 7:30pm on 12 May 2026 can only be offset against residential rental income or future capital gains, not your salary or wages. New builds are treated differently. The CGT discount rules also change from 1 July 2027. Confirm how this applies to you with an accountant before you buy.
The FIFO investment loans page lays out the loan options for investors, and our mortgage brokers can compare loans from lenders across Australia for you.
Frequently Asked Questions
What is rentvesting?
Rentvesting means renting the home you live in and buying an investment property elsewhere. It lets FIFO workers choose where they live and where they invest separately.
Can a FIFO truck driver get an investment loan?
Many lenders will assess FIFO income, but they treat roster pay, allowances and overtime differently. A mortgage broker can compare how different lenders count your income.
How much is a $500,000 investment loan at 6.75% p.a.?
At the illustrative rate of 6.75% p.a., interest only is about $2,813 a month. Principal and interest over 30 years is about $3,243 a month. Your actual rate will vary.
Are rentvesting costs tax deductible?
Some investment property costs may be deductible, such as loan interest, but rent on your own home is not. Negative gearing and CGT rules change from 1 July 2027, so speak to your accountant before relying on any tax outcome.
